Beware of Mortgage Brokers

Free advice is worth exactly what you paid for it. That's something worth remembering. When using a mortgage broker ensure that you understand exactly who they are representing.
 
In this article I'm going to generalise a lot, not all mortgage brokers are like this.
 
If you use a broker that works on a commission basis, that broker will recommend to you deals which gain him the most commission, irrespective of the cost to you. I remember when I was buying my first house, we used a broker. The broker tried to convince us to take out all sorts of extras such as life assurance, payment protection etc, in fact by the end of it over 40% of our monthly mortgage payment was made up of these extras!
 
If you need financial advice, ensure you pay for it, that way you know you're getting something worthwhile. In addition, consider why exactly you want to use a broker. Nowadays, with the credit crunch, you can often get better deals by going directly to the banks websites, rather than using a middle man.

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